Jitters as Fiscal Cliff Threatens Economy

11/16/2012 12:03PM

WSJ reporters in Washington discuss the week's two big stories: the negotiations to find a deficit deal to avoid the looming fiscal cliff and the David Petraeus scandal that has engulfed the American intelligence community.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I ... we ... are well swing states the truth is gone and now we have a neutral or watching its fiscal cliff ... um and that ... the lookout and post election you have the same president as before ... the same party reading this and ... the same party running the house ... and every expects the problem of how to do a deal on the deficit to get solved the next two months magically ... when nothing's really changed I can't figure out why that should be the car well might not be the case when you do have the exact same cast of characters talking about the exact same thing ... they're least a couple things different one is ... we are facing as you said the fiscal cliff these tax increases and spending cuts ... that will hit us at the end of December unless ... they can reach some agreement ... we didn't have that same action forcing event before ... and secondly that the case haven't noticed ... the present one ... and he thinks he has better cards and he thinks the Republicans believe they have ... more scars than they did before it's just the thing that's the big difference is that last time he probably didn't get a deal was that the country defaulted on debt and that was a big sword heading over Obama but this time the problem is ... all taxes go up in spending has cut the deficit goes down ... it's a lot easier for him to swallow the straight when the earth is deftly moved a little bit for everyone from the ... debate last year and two years ago where there is no talk of any tax increases ... no tax increases are on the tables to question of ... who's going to pay this tax increases and how big of a tax increase is going to be ... so you know at this point the president's been talking ... a tough game and tonight will go into next year will go through what sort of blaster this fiscal cliff is no agrees tax increases or more ... the question is ... you know when a surfer listing to negotiate with assorted other backlog and will Republicans ... women to tip or they can sort of go back into the park to meet the new model is people is parties ... big tax increase big defense fitting the bill for ... one of the prom with rival he he's having a balance and I think you look at an ounce of power in Washington it's the same month a little bit different ... and that the president lying ... if Republicans in June as well as they thought they would do this and Lauren houses we see some softening in their rhetoric in one short of remarkable thing is for now ... we had two thousand ten elections and after that the conversation shifted to ... not ways to cut spending but by how much it should cut spending ... in out its place Alexion's and you have a conversation shifting to doubt what they should raise taxes or revenue tax revenue ... but how you do that and said the whole environment Yuasa added moment where in all of its eight years in office is the least political that things are going ... to be ... and once again into next year the politics will start heating up and things will change a little ... still it's a really good point when that things were the good things that came out of the campaign was at ... the country is ... litigated and debated these issues and know us you know we've all been looking hard about Medicare with all been talking about taxes so ... the Selic whatever the proposed a dividend is can it be a surprise to Americans ... it was sort of realizes the issues of taxes nations with Medicare so Security ... there are no ... public the address to the next few months and the the the the ... given less of a shock factor I think I think the other issue is does the politicians think the public simply want to ... get on ... although polls show that in patients with a dysfunctional Washington ... and it does put pressure on people whether it's enough pressure to get them to me ... in the middle somewhere I think is too soon to tell but that's deftly different and there's still other things there's ... the issue is more at resonates more with the public you can do that that's a lame was kind of this esoteric name that people didn't really understand the family and the desire to make ... his NHL out they understand that the economy could slip back into ... so that's that's the president's term and that was from current ... annual this the right and you really love to use it as a lot and he'll go out and try to gain public support ... for his plan and in the euro due to Geitner this week and that that's where streaking through in which he just uses say well we have passed more revenues in some spending cuts that have a balanced deal which is what the of a decision so recent he said tax rates have to go up right ... he's heard the argument that made the we don't need to raise tax rates the weekend as curtail deductions loopholes credits the exclusions ... to get the money that way from the people that up ... he basically said and the president of the math doesn't work there ... Mr. Anderson does a lot of magical thinking ... about his words about how much money you can get by ... this tax reform so I think ... for now it all the missed ration is pretty much convinced that ... the only way they get enough revenues ... to make the big the big deal possible histories to ... deserve a fair question though ... the car is far less forgivable the shoes ... and thought to be going into this Christmas shopping season in early December there's no way that the deal will in the summer ... and then they might pull back a little bit just wondering about what concern is good and oh how I mean you saw the CEO of Wal Mart making the point is this week oh well ... I think the answer anything is overblown ... but there is something to him ... and ... it's amazing people like you in the game yet been talking about the fiscal cliff for months ... but for most Americans it was something that just popped up in debt to excise the chart that I did you uncool we know what the words it looks like whatever is there too ... class ... the isthe is that ... what's the media ... to Yemen ... so this would clearly be the most interesting story in town this week ... except that I'm interested in what is remarkable you know it's ... it's a fierce the CAA Director it's no intentions this is not one moment that two women in and one general that in general ... and it's it and maybe some do think it's just remarkable and ... done I don't think it's over yet but I'm not sure that it has any particular impact on ... present Obama the White House ... except it does create the sense of ... the upside is on pace vacancy in the paddlers that ... certain to announce the payout ... I was talking to somebody who is travel was traveling with the president back in Japan in the morning after the elections he just ... completely exhausted ... and then was ... informed about this very scary is that I've scanned all that ... came my legs and I think anyone really ... when it first ... um but it's the ... it's the kind of thing that in Obama world they can't stand ... the next does because it creates a distraction and Celine says it's ... a media feeding frenzy it's just the kind of thing that he was ... the present incarnation on these kinds of things is just plain ... cut ahead of the beast immediately ... and this is no bombs no drama Obama no drama and just I mean it's right ... not all ... at the Fed now ... with the move ... went into thousandeight in the right to avoid this thing happening ... so it's like this guy can ... get a couple weeks the likelihood transition into what the things that without some huge ... silly distracting problem this one isn't it opens the door bell and conspiracy theories as it is lycopene a ... result some people are saying well when that the president know who told them this investigation going on for months shareholders that regional mood for at least weeks into the hell the president ... I'm not persuaded that that makes much sense because what with the president had even told them ... by the way you know of ... that didn't betray associate rector was much more popular among Republicans and Democrats ... so ... it doesn't quite add up nonetheless it with weeks of conspiracy theories coming before the snow ... well one of things a presence had this this conference this week ... was that you know ... if he had been told about the investigation ahead of time people would accuse him of ... meddling Landon invest an ongoing investigation into his view was unique am when I when things were not an either way but he also ... didn't say that he was really happy with how that the procedures that setup said he didn't know until there is returned to Republican criticism that has made them another shot of all ... this ... because one of the conspiracy theories is that ... David trance was pushed out the could've kept it around so in the fear of the deal ... he was pushed out because they did when talking about what really happened that day the consulate in big Ozzie ... which by the way was released in March major's silat CA office was overrun by now ... that the problem that theory that and I think is that he wanted ... it didn't taste Sudan and shut up about big Ozzie the best intends to keep them in and get that that can ... be dangerous you know when to say much is to push him out ... and is free to talk to anybody wants it to the talks ... by Nicole ... I love this ... the the first three we had tears form posse was a just Russia for the press in the last six months but to buy ... one from a ... local TV writing this is a prelude of things to come I think every has a second becomes for Aussie was to just get fed up with domestic politics say is the whole world ... speaking of which as you said ... Davis CA ... job to fill is going to find the Secretary of State Highway sector defense because we are bananas products that for too long ... and a Treasury secretary and how was ... taken into are the ... isthe was that we're all playing with the right with us ... analysts are pretty ... pretty crafty have Heard SEC caves a bit ... Susan Rice to present vigorously defended this weekend's news conference ... and John Kerry although the money is more UN Susan Rice at this point and there's talk about ... the good Senator Kerry the Defense Department position ... Treasury everything you ... can speak to us with some JetBlue party Bakley ... Realogy's incentives ... the sun was almost healing and people discussing this over and over as many as we were first leading indicator it sure feels like that's what Mitt Romney tended ... and then for say I have that the president's counterterrorism homeland security advisor John Brennan has a very ... keep to themselves ... but not ... as ... ominous fits the stereotype of what you think CAA Director would be like ... um today he certainly isn't about who would like that John doesn't help some of this year I was and he's been itching to get out of the lighthouse a little that ... um and then there's other people he says you know it as after any election are knocking on the door for jobs people a presence good friends ... I'd better Massachusetts' top hat trick and the present day there with him and is ... the first lady and tell her Pachter slate last week ... and they're trying to figure out you know where the money ... you might gather some talk about the Justice Department but then there's also talk about perhaps the Commerce Department ... says the number of positions though it said this is what happens is that the terms you you you have to then we'd be on the family's and friends' ... circle as those of you women with you and find ... a broader circle of people with humans in many cases people you don't know is well and that's probably gonna be true and economic ... it's interesting isn't that lower than the president Bush's second term he wanted to start this big national debate about Sosa Security ... going to start a debate about tax and fiscal policies that are right there ... no waiting for him so ... I mean did they see this is an opportunity to ... know really drop reserves and make some lasting changes to the tax code and to have a programs like Medicare ... but it's something that they're they're lifting gauges Congress on because that these debates have to have to be headed in the ... fiscal cliff is there are these the debt ceiling is right there they have to forget what is with his arms full second term to be kind of ... no one but the distressed debt and the conversation began ... hosting says truant we'll see how far this gets in the next week ... I next week's Thanksgiving week join us will still be here you may be on vacation we want people to talk about the fiscal cliff ... and a little bit about the transition in China and what it means here ... Joinus on DC bureau ... series ...